Corporate social responsibility has become increasingly significant as millennials enter the work force and account for roughly R37 trillion in spending power. According to recent studies, 70% of millennials report that they will spend more with brands that support a social cause. Therefore, in order to buy over the millennial market, companies need to consider their own social responsibility.
Corporate donations have an immediate benefit in the form of a tax deduction. When following the correct procedures and complying to the tax requirements, a company who sponsors charitable events or donates to charities who are approved s18A public companies, will be able to claim a tax deduction.
While tax deductions are the most obvious and immediate benefits to a successful social responsibility policy, it is certainly not the only benefit. Here are four other benefits to corporate sponsorships, donations and company volunteer programs.
1. Workplace morale
According to a 2016 study done by Deloitte, millennials are twice as likely to rate the corporate culture as positive if the company they work for participates in volunteer programmes and gives back to the community. In fact, the survey found that millennials who participated in workplace volunteer programs were more likely to be loyal to, and proud of, the company that they work for.
According to the study, employees who participate in workplace volunteer programs and have a clear understanding of the impact of their efforts, are more likely to have a positive attitude towards their workplace.
Workplace morale has been directly linked to an increase in a company’s success, especially for small businesses. So, implementing a volunteer program and ensuring your employees have a good understanding of the impact of the program might be what your company needs to boost morale.
2. Enhance leadership skills
Deloitte’s 2016 Impact Survey also indicates that volunteering experience may help build leadership skills that are vital to a leader’s success. Corporate training and development can be a large financial investment and companies are always seeking more cost-effective ways to prepare their employees and upskill them. While corporate training cannot be replaced by volunteer programs, it could provide employees with informal training and help them hone their leadership skills. In fact, 90% of companies agreed that volunteer programs that contribute skills and expertise to a non-profit can be an effective way to develop leadership skills.
3. Productivity
As mentioned above, workplace volunteer programs have a direct link to workplace morale and morale plays a large role in workplace productivity. An employee who feels satisfied in their role and has a better sense of worth within their organisation will almost always outperform an employee who has a negative sense of workplace morale. [1]
We have already established that the leadership skills of your employees will increase through volunteering. Better skilled employees and better leadership will create a more productive workplace environment. Leader’s are better equipped to solve problems and support their teams, creating a more efficient and effective working environment.
4. Marketing
Volunteer programs, charitable sponsorship and giving can have a positive impact on the surrounding community while also marketing your business. It is a great way to win over the community. Both non-profits and corporations can work together to leverage sponsorships and volunteer programs to gain marketing exposure. Marketing departments can harness the hype around a volunteer program or corporate sponsorship to build brand awareness using the company’s social media platforms.
Corporate social responsibility is a buzz word for a reason. Volunteer programs can boost morale, increase productivity, help employees hone their leadership skills and provide the opportunity for marketing exposure. Companies should jump on the opportunity to do some good while also leveraging their volunteer programs or corporate sponsorship to advance their business.
[1] https://smallbusiness.chron.com/morale-workplace-hurt-business-36295.html
